Ask Francine

By Francine Russo

Beginning with this installment of Generations, Francine Russo, a long-time contributor and reporter for the section, will answer questions about the many predicaments facing baby boomers.

Drop her a line at [email protected]

Some folks I know have asked me how a prenup would affect college financial aid for kids in a recently blended family--especially if one spouse has a valuable house and they each want to pay for their own kids' education. Must they provide the stepparents' assets on the aid forms? And if aid is denied, is it fair to stick a new spouse with a bill nobody counted on?

Prenup or no prenup, the situation would be the same. Prenups just aren't a factor in calculating aid. So, yes, you must supply the information. But here's good news: some schools, such as Ivies and other top institutions (like Wesleyan and Emory) have recently adopted a new home-equity policy that caps home value at 2.4 times family income.

There may be other options. Kal Chany, who wrote Paying for College Without Going Broke, notes that some schools, like Boston University, specifically offer merit grants for students with little financial need, and some are more sensitive to the issues of recently blended families.

Apart from practical considerations, keep in mind that a prenup usually deals with what happens to each partner's resources in case of divorce or death. Only rarely does it dictate how a happily married couple pays bills day by day. It's tough when it hasn't been researched before the wedding, but couples probably don't examine each other's teeth either. And if your new spouse needs a full set of dental implants, that could cost you as much as a college education.